Investments in Solana-based investment products increased by an astounding 388 percent last week, with institutional investors obtaining exposure to $13.2 million worth of SOL products.
Altcoin exposure is now in high demand among institutions, with the altcoin market share currently accounting for 35 percent of all capital invested in crypto investment products, according to data from CoinMarketCap.
CoinShares’ Digital Asset Fund Flows Weekly report, published on September 7th, revealed that approximately 40% of the previous week’s inflows to digital asset investment products were allocated to instruments tracking alternative cryptocurrencies.
However, while a total of $97.8 million was invested into crypto investment goods between August 30 and September 3, marking the third consecutive week of inflows into the industry, only $38.9 million was placed into altcoin investment products.
Additionally, a significant surge in institutional crypto investments was witnessed during the past week, following two weeks of inflows of $24 million and $21 million respectively.
Approximately 35% of capital invested in institutional crypto investment products is currently locked in instruments tracking assets other than Bitcoin, representing a retest of the metric’s all-time high established in May of this year.
For the second week in a row, Ethereum (ETH) tracking products topped the altcoin pack in terms of inflows, bringing in $14.4 million, a 16.2 percent fall from the previous week’s $17.2 million.
Weekly inflows into Solana (SOL)-based products increased by a whopping 388 percent, with SOL-based products accounting for $13.2 million of total inflows. This occurred at the same time that the price of SOL increased by 37 percent over the same period.
CoinShares reported that inflows into Solana products had more than doubled year-to-date (YTD) in the last week, with a total of $25 million having been invested into SOL instruments throughout the entirety of 2021 so far, according to the company. In terms of overall assets under management, SOL-based products presently account for $44 million (AUM).
Bitcoin (BTC) investment products defied an eight-week trend of outflows — the longest such stretch in the history of any digital asset product — by attracting inflows of $58.9 million for the week ended September 3. BTC investment products have had outflows for 14 of the past 17 weeks, despite the bullish turn in the overall trend.
The aggregate assets under management (AUM) of institutional asset managers presently stands at $62.5 billion, which is close to the record high of $66 billion reached in mid-May, according to CoinShares calculations.
Grayscale, the largest institutional asset manager in the world, continues to dominate the competition, accounting for 73 percent of the aggregate AUM of the industry, or $46.2 billion.